Mason Company currently produces all its product components. Another firm has offered to supply the gear mechanism at $6 each. Mason's total cost per gear mechanism is $9.30 which is comprised of $6.10 in variable costs (direct materials, direct labor, and variable overhead) and $3.20 in fixed costs. The fixed costs are based on production of 3,000 gear mechanisms, and none of it would be eliminated if Mason accepted the offer. By how much would profit change if Mason accepts this offer and purchases 3,000 gear mechanisms? A. $9, 900 increase B. $9, 900 decrease C. $5, 400 increase D. $300 increase The following materials standards have been established for a particular product: Standard quantity per unit of output 7.3 Pounds Standard price $ 14.45 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 6, 600 Pounds Actual cost of materials purchased $91, 740 Actual materials used in production 5, 900 Pounds Actual output 1,000 units What is the materials quantity variance for the month? A. $10.115 F B. $20, 230 U C. $10.115 U D. $20, 230 F What is the materials price variance for the month, assuming the company records raw material inventory at standard costs of raw materials? A. $3, 630 F B. $3, 630 U C. $3, 245 U D. $3, 245 F